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Precautionary price stickiness

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  • Anton Nakov

    (Bank of Spain)

  • James Costain

    (Bank of Spain)

Abstract

In ongoing work, we are also estimating a generalized model in which both the price chosen, and the decision of whether or not to adjust the price, are subject to logit errors. This should allow us to distinguish whether intermittent adjustment is driven primarily by a risk of errors or by stickiness per se.

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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2010 Meeting Papers with number 774.

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Date of creation: 2010
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Handle: RePEc:red:sed010:774

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  1. Eichenbaum, Martin & Jaimovich, Nir & Rebelo, Sérgio, 2008. "Reference Prices and Nominal Rigidities," CEPR Discussion Papers 6709, C.E.P.R. Discussion Papers.
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  7. Álvarez, Luis J., 2007. "What Do Micro Price Data Tell Us on the Validity of the New Keynesian Phillips Curve?," Economics Discussion Papers 2007-46, Kiel Institute for the World Economy.
  8. Mark Zbaracki & Mark Ritson & Daniel Levy & Shantanu Dutta & Mark Bergen, 2003. "Managerial and Customer Costs of Price Adjustment: Direct Evidence from Industrial Markets," Working Papers 2003-07, Department of Economics, Bar-Ilan University.
  9. Peter J. Klenow & Oleksiy Kryvtsov, 2005. "State-Dependent or Time-Dependent Pricing: Does it Matter for Recent U.S. Inflation?," NBER Working Papers 11043, National Bureau of Economic Research, Inc.
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  12. Robert Lucas & Mike Golosov, 2004. "Menu Costs and Phillips Curves," 2004 Meeting Papers 144, Society for Economic Dynamics.
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  1. Precautionary price stickiness
    by Christian Zimmermann in NEP-DGE blog on 2011-09-08 03:03:46
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Cited by:
  1. Bo E. Honoré & Daniel Kaufmann & Sarah Lein, 2012. "Asymmetries in Price‐Setting Behavior: New Microeconometric Evidence from Switzerland," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44, pages 211-236, December.

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